Apple and Cisco settle iPhone lawsuit

Apple and Cisco said on Wednesday they have settled the trademark-infringement lawsuit over the use of the iPhone name for Apple's new multimedia phone.

The agreement allows both Apple and Cisco to use the iPhone brand on their own products. Also, the companies said that they would explore opportunities for interoperability in the areas of security, consumer and business communications.

The brief announcement made no reference to any financial agreement or specified how the two companies might work together. Representatives for Apple and Cisco were not immediately available to comment.

Cisco sued Apple for trademark infringement in January after Apple unveiled its long-awaited multimedia phone called the iPhone, a name claimed by the network-equipment maker. Cisco also charged in its complaint that Apple had attempted to get rights to the iPhone name several times, but after Cisco refused, the company created a front company to try to acquire the rights another way, according to the lawsuit.

Cisco obtained the iPhone trademark in 2000 when it acquired Infogear, a small start-up company that developed consumer devices that allowed people to easily access the Internet without a PC. Infogear had actually registered the iPhone trademark in March 1996.

Cisco's home networking division, Linksys, has been using the iPhone trademark on a new family of voice over IP phones since early last year, Cisco said. In December, Linksys expanded the iPhone family with additional products.

The two companies had been in extended negotiations to settle the lawsuit, and a second extension of the talks were set to expire on Wednesday.

The iPhone, which Steve Jobs unveiled in January at the Macworld Expo, will allow users to listen to music, make phone calls, send text messages and email, surf the Web, and take and upload photos. It's expected to be available in the United States in June and will come in two versions, a 4GB model for $499 (£255) and an 8GB model for $599 (£310). Prices and availability for the rest of the world have not been announced.